What is the purpose of using the SOAR framework for competitor analysis?

The SWOT and the SOAR analysis models are two different business management tools that are used as organizational frameworks to enhance business performance. Some organizations use both methods, while other will choose one or the other.

SWOT Analysis is an acronym for Strengths, Weaknesses, Opportunities and Threats. SOAR Analysis, on the other hand, stands for Strengths, Opportunities, Aspirations and Results. Learn a little about each of these business frameworks and how to present them effectively to your audience.

What Is the SWOT Analysis for Businesses

Any organization can benefit from performing a SWOT analysis. This evaluation method helps organizations understand their strengths and weaknesses, as well as identify any opportunities they may have. No strategic planning tool is complete without a threat analysis and a plan for tackling them. 

The SWOT analysis is both simple and collaborative, allowing enterprise planning teams to easily generate ideas and strategies. Compared to other strategy planning methods, the SWOT analysis orients strategies around competitive advantage and gap detection. From a human resources perspective, employees can perform their own SWOT analyses in order to help develop their career in a way that makes best use of their talents and abilities.

SWOT Analysis Strategy Outline

The SWOT analysis strategy is a powerful tool that helps organizations uncover opportunities that would have otherwise been missed and leverage their strengths to take advantage of them. On the flipside, organizations can clearly address threats and weaknesses after performing a SWOT analysis.

The advantage of the SWOT analysis is in its focus on both internal and external characteristics. The first two letters in the acronym, strengths and weaknesses, correspond to internal evaluation. The second two letters, opportunities and threats, are usually external factors for the analysis team to investigate.

Here are the basics for each component of the SWOT analysis.

SWOT: Strengths

Those performing a SWOT analysis template for companies should brainstorm what they do better than their competitors. They should also list the technical and non-technical advantages their organization has. Include an analysis of the unique selling proposition your organization has, as well as your value proposition.

This way, you’ll include strengths as seen from an internal view, a client-facing view, and a market comparison.

SWOT: Weaknesses

You’ll want to focus on things that employees see as weaknesses internally, as well as what clients and competitors view as weaknesses of your company. Note that it’s crucial for everyone to be honest and transparent. It’s better to face reality at this stage so you can make the necessary improvements, rather than turn a blind eye and suffer the consequences later.

If you want to make your company SWOT analysis even more helpful, then you’ll analyze possible improvements and solutions for these weaknesses. Don’t forget to look at factors that could be avoided in order circumvent these weaknesses and, in turn, help your organization achieve their objectives.

SWOT: Opportunities

No company wants to miss out on available opportunities. That’s why the SWOT analysis is a useful tool to conduct multiple times, whether yearly or quarterly. This allows you to keep up with the trends in your organization’s field and constantly adjust to the evolving market.

Keep an eye out for both concrete business and marketing opportunities, as well as how changes in government policy and technological advancements present opportunities.

SWOT: Threats

Threats consist of the obstacles and barriers you face while in operation. However, it can also include threats due to changes in your field, technology, policy, or market that can affect or disrupt your organization’s objectives.

Instead of just identifying these threats and moving on, you should also brainstorm what your company can do to react, adjust, improve, and avert these problems.

A Real Life Example – Tesla SWOT

Let’s take a look at a well-known company: Tesla. The first iteration of the SWOT Analysis consists of identifying each of the factors on the SWOT Matrix. The following PowerPoint Presentation outlines the major factors after the first evaluation:

As you can see in the SWOT Analysis PowerPoint Template, nine factors are listed and ready to be presented by the analysis team. Based on these nine points, the analysis team can outline a strategy.  The more detail you add to each of these points, the better your resulting strategy can be, of course. The analysis team can continue iterating until they reach more detailed descriptions of each of the four areas of the SWOT analysis.

You can check out the full SWOT Analysis for Tesla in the following video:

While a company SWOT analysis may seem like the perfect strategy, it for many, it is only a ‘kick-off’ strategy planning method. Many companies prefer to supplement it with other tools, such as the SOAR analysis.

SOAR Analysis as a Maturity Step

Where the SWOT analysis focuses on organization strengths and weaknesses, the SOAR analysis engages all levels and functional areas of an organization. The SOAR analysis focuses primarily on strengths, opportunities, and vision for the future. By extending further into future thinking, this analysis technique can be integrated into your strategy planning as a much more rigorous tool than the previous analysis. Keep in mind that this evaluation method will probably take more time than the SWOT analysis.

SOAR Analysis Outline

You’ll see some similarities in the SOAR analysis outline compared to the SWOT analysis, though there are some key differences. For one, this strategy is much more forward-thinking and action-oriented as it focuses on results. Here’s an analysis of each letter of the acronym.

SOAR: Strengths

An organization should focus on its greatest achievements, what makes them unique, and what driving factors guarantee success. This list focuses both on boosting the general morale of staff and making sure that standards are upheld for continued benefit.

SOAR: Opportunities

This pillar focuses on new markets and opportunities, as well as possibilities for improvement. This will also help your company revise how they differentiate themselves and stand out from their competitors.

SOAR: Aspirations

This tool aims to drive the organization towards attaining their goals. Here, you’ll focus on initiatives and processes that will bring you closer to success. You can ask yourselves how your strengths and opportunities will translate into future aspirations for your company.

SOAR: Results

As one of the main benefits of the SOAR analysis, this pillar helps organizations know if they are on the right track towards achieving their goals. Here, you’ll be able to evaluate if you are successfully transforming your vision for your company into a reality.

Recommended: Best SWOT Analysis PowerPoint templates

SWOT Analysis – Real Life Example (continuation)

Previously, we listed the SWOT Analysis for TESLA. In the following example, you can see the SOAR Analysis for the same company. In this case, every characteristic is rated and sorted in order to keep the 4 more important and “related”. This analysis shows how TESLA can take advantage of their company strengths to pursue existing  and future opportunities, define the aspirations, and decide which KPI’s will measure them over time. Clearly, the analysis is much richer and more strategically aligned.

Conclusion

Both of these methods are tools that can greatly improve the outlook of an organization. Both SWOT analysis and SOAR analysis help companies deal with external forces and ensure that objectives are well defined. There are pros and cons to choosing one evaluation method over the other. However, if you want to ensure an in-depth analysis, you and your organization may want to perform both methods. There’s no such thing as too much knowledge and understanding when it comes to a company’s success.

Alternatively, discover our articles on how to present a SWOT Analysis and how to develop a Personal SWOT Analysis.

The SOAR Analysis is a Method that helps companies Define and Track their Goals.

• Analyzing the Competitiveness of the Company within its Market.

To do this, it proposes 4 Steps that First look at the Strengths of the Company and then Study what it can do with these Strengths.

Its name is an acronym for the 4 Steps proposed:

• Strengths.
• Opportunities.
• Aspirations.
• Results.

1. Strengths: Analyze what the Company Dominates. What it is Good at.

• It can be a Small Strength that makes it more Unique, Faster, etc.

2. Opportunities: Study the Market and where these Strengths can be Valuable.

• In what Market Niches, these Strengths can offer Advantages?

3. Aspirations: What the Company wants to Achieve and When.

• What Role the Company wants to Play in the Market.

4. Results: Is the Company Achieving its Goals and Milestones?

• Is the Company Efficient in achieving its Objectives?

SOAR Analysis Template

Now, we will share a first example, so that you understand the usefulness of this Method and How it is commonly used.

Imagine that you are Starting your own Business.

• For example, you want to Start your own Academy.

What would you probably do?

Or… What should you do?

You should sit down and think about:

Strengths

You would meditate on:

• What Branch of Knowledge you can Teach; Science, Law, etc.
• What Subjects you are Good at; Math, Physics, Biology, etc.
• In What Topics you are an expert; Differential Equations, Fluid Dynamics, etc.

Opportunities

Then, you would analyze:

• What is Missing from the Market?
• In which Topics you have less Competitors.
• What Topics or Subjects are more in Demand?

Aspirations

You would have to think about:

• Your Ambitions: Where you would want to be.
• The Growth you can expect in the Future.
• How much are you Willing to Sacrifice?

Results

You should Establish:

• What your Goals are.
• What Metrics you would track.
• Deadlines and Milestones.

In this way you could easily track your Progress and Improve what is needed.

Now, before looking at more examples, we would like to clarify one thing:

• The Difference between SOAR and SWOT Analysis.

In case you haven’t noticed, they are very similar.

Let’s analyze their differences:

The SWOT Analysis delves into the Threats and Weaknesses of the Company.

• It explores what the Company is not good at, and what Risks it faces.

The SOAR Analysis Focuses on Strengths and Opportunities.

• Obviating the weaknesses of the Company.

The SWOT Method is commonly used for Analyzing External Companies.

• It is commonly used for analyzing Competitors and Market Players.

The SOAR Method is practically always used for Internal Analysis.

• It is very difficult to Guess the Aspirations and Results of a Competitor.

* Check our “SWOT Analysis” Page in case you are Interested about it.

Let’s see more examples, so you understand this Tool better:

We have chosen 3 Successful Companies and Developed a SOAR Analysis of each them.

• As you can guess, we have had to imagine what these Companies Aspired to.
  • And How they Established and Evaluated their Results.

Although we have no internal data from them, we believe that this analysis can be helpful to Understand How the SOAR Method can be used.

Let’s begin:

In case you don’t know, Etsy is a “Handmade Products” e-commerce Company.

• It commercializes handmade jewelry (especially).

The idea is Great.

Let’s imagine that we worked at Etsy in its early days and developed a SOAR Analysis.

How it could look like?

Strengths

Etsy is one of the few Companies Focused on Handmade Products (in that early days).

• The vast majority of e-commerce Businesses sell Mass produced Products.

Opportunities

There is a Growing Demand for Handmade Products due to their uniqueness.

• And there is a weak and Poorly Coordinated Supply.

Aspirations

Etsy wants to be the Reference in the e-commerce Market for Handmade Products.

• To be the Largest and most Reliable Company in the Market.

Results

Etsy will be focused on (we are making this up, of course):

• User Growth: We want a 15% Quarterly increase in the next 2 years.
• Operations Growth: We want a 10% Quarterly increase in the next 2 years.
• Profits Growth: Annual Target of 5% Growth in the next 10 years.

After one year, you check that these Goals have been Met (until that moment).

• The Company is Successful in achieving its Goals.

* Remember: we have invented all these Goals and Results.

• This is just one example of what the SOAR of a successful company could look like.

Now, let’s imagine that we worked for UBER a few years ago.

• Or maybe that we were Travis Kalanick (its founder).

What would a SOAR analysis of UBER look like?

Strengths

UBER has a very intuitive and Easy-to-use GPS Location App.

• You know, at all times, where is your Driver and what the Route will be.

Opportunities

Taxis are Regulated throughout the world. And Demand is greater than Supply.

• This App offers an “Easy” way to privatize the Sector.

Aspirations

Become the World’s Taxi Company (we made that up, of course).

• Be for the Taxi Sector what Google is for the Internet.

Results

As UBER can Grow enormously due to its huge Targeted Market, you suggest:

• An Annual Growth in Operations of 50% the next 2 years.
• An Annual Growth in Profits of 25% the next 5 years.

After one year, you see that all your Operations Growth Goals have been Met…

• But your Profit Target hasn’t.

You decide to Analyze what went wrong, and to Update your Goals.

* Remember: we have invented all these Goals and Results.

• This is just one example of what the SOAR of a successful company could look like.

Finally, we’ll imagine that you were among the Founders of TikTok.

• You wouldn’t be reading this, for sure.

Before its incredible Success, you decided to develop a SOAR Analysis:

Strengths

You have the Expertise of several years of Social Platforms.

• YouTube and Facebook had to Discover what worked and what didn’t.

Opportunities

Everybody has a Cell Phone with a good Camera. Social Platforms can Focus on it.

• When YouTube was born, Mobile Phones were like Bricks.

Aspirations

Become the most accessible and Popular Social Platform in the World.

• Getting started on TikTok is much easier than YouTube or than creating a Site.

Results

As TikTok can Grow in disproportionate ways (it is very accesible) you establish:

• An Annual Growth in Users of 100% for the next 5 years.
• An Annual Growth in Profits of 50% for the next 10 years.

After 6 months you Achieved your Annual Goals.

• So you had to Set new and More Ambitious Goals.

* Remember: we have invented all these Goals and Results.

• This is just one example of what the SOAR of a successful company could look like.

The SOAR Analysis is a Method that helps companies Define and Track their Goals in 4 Steps.

Its name is an acronym for the 4 Steps proposed:

1. Strengths: Analyze what the Company Dominates. In what it is Good.
2. Opportunities: Study the Market and where these Strengths can be Valuable.
3. Aspirations: What the Company wants to Achieve and When.
4. Results: Is the Company Achieving its Goals and Milestones?

Differences between SWOT and SOAR Analysis:

• The SWOT Analysis delves into the Threats and Weaknesses of the Company.
• The SOAR Analysis Focuses on Strengths and Opportunities.
• The SWOT Method is commonly used for Analyzing External Companies.
• The SOAR Method is practically always used for Internal Analysis.